Using the Perpetual Inventory System,discounts Taken on an Invoice,such as 3/10,n/30,would

question 93

Multiple Choice

Using the perpetual inventory system,discounts taken on an invoice,such as 3/10,n/30,would be:

• A)credited to Inventory.
• B)debited to Cost of sales.
• C)credited to Cost of sales.
• D)debited to Inventory.

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Definitions:

Express Authority

The clear, direct authority granted by a principal to an agent, specifically outlined in their agreement.

Actual Authority

An agent’s ability to affect the principal’s legal relations. Consent must be communicated to the agent.

Authorized Sale

A sale that is officially approved or permitted by the relevant authority or governing body, often following designated protocols or rules.

General Agents

Individuals authorized to perform a broad range of actions on behalf of another person or entity.